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BMPM5103
PERFORMANCE MANAGEMENT
MAY 2019 SEMESTER
PREPARED TO:
LECTURER’S NAME
PREPARED BY:
CONTENT
PAGE
1 INTRODUCTION 1
2 FINDINGS 6
3 DISCUSSIONS 9
4 RECOMMENDATIONS 17
5 REFERENCES 19
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1. INTRODUCTION
In today globalization era, the measurement and analysis performance of employee’s is the
development. This measurement system may vary and brings an implicit definition of
researcher, there are many questions rising up when it comes to measuring the performance
of employees or performance management process. Often, we heard the phrases such as “you
are what you decided to be” and “if you can’t measure it, you can manage it” (Islam, Adler
and Northcott, 2017). These questions are vital and surely true when measuring the
employees’ performance are becomes necessity and these choices are directly affect the
results. Performance measurement is a demanding business and has several approaches from
by assessing how much they contribute to the company’s growth or development. Usually,
this is given to the employee at the time of their performance appraisal. The term of
performance appraisal is the mechanism of evaluating the employees by providing them with
significant response and it gives the two parties a platform to create a positive effect on the
future company’s development and the employee’s performances. Therefore, this study will
identify and assess how performance measurement is administered and some literature review
In a few decades until now, choosing suitable methods in measuring the employee’s
performance is one of the most critical challenges facing by many organizations in the world.
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As they play a vital role in developing strategic plans, thus their decision is very crucial.
Performance management system depends on the type of the business. However, the
In this context, performance appraisal is the mechanism in a way to recognize the current
skills employees or their contribution to their work force. Adnan and Yousif (2014) reviewed
the approach of performance appraisal in two different branches which are traditional (past
oriented) and modern approach. According to their study, traditional methods are only
focused on the evaluation of the past performance such as ranking method between the
employees, graphical rating scales, critical incident method and narrative essay. These
methods basically concerned about the comparison between superior and his employee and
the evaluation of employee strength in terms of attitude and performance. Meanwhile the
modern methods were more to enhancing the conventional methods. The modern methods are
humans’ resource accounting (HRA), assessment centres, 360 and 720 degree. However,
each method has pro and cons especially when the company has to find the best answer to the
Sudan, Adnan and Yousif (2014) proposed the approach to measure the performance of
using fuzzy logic. This approach is a combination of multiple techniques including fuzzy
Analytic Hierarchy Analysis (FAHP) (Russell and Taylor, 2003). FAHP is a quantitative
technique for rating decision alternatives and selection of the one given multiple criterions. It
Furthermore, this method consists of four layers with hierarchical structure such as faculties,
academic staff, info-structure and administration. In order to evaluate the performance, Fuzzy
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Technique for Order Preference by Similarity to Ideal Solution (FTOPSIS) technique was
conducted while, the FAHP method as a weighting parameter. FTOPSIS is the multi-criteria
technique based on the concept that selected alternative is the shortest geometric distance to
the positive ideal solution and the longest geometric distance to the negative ideal solution.
On the other hand, Yaghoobi and Haddadi (2016) used different approach by
describing the theoretical framework which is combining the Balanced Scorecard (BSC) and
performance measurement model by integrating two techniques of BSC and AHP within a
telecommunications company. Later, this methods lead in assessing the company KPIs, the
perspective of BSC and the best organizational unit. The results can help the organization to
evaluate and revise its strategy and generally to adopt modern management approaches in
everyday practice. The approach has benefits which we state in the two following paragraphs.
BSC integrate several perspectives for company performance evaluation and enables
the company to enhance performance at all levels. In addition, BSC focus on the importance
than relying solely on financial results. However, senior managers tend to pay far too much
attention to the financial dimensions of performance and not enough attention to driving
forces behind those results. The approach is focused to offer a comprehensive view of how
the enterprise is doing and where it is going. Therefore, it will help managers see if any key
factors are missing. In response to the method, participants of the evaluation process gain
input into the critical areas of the decision process. AHP provides a comprehensive and
rational framework for structuring a decision problem, representing and quantifying its
elements, relating those elements to overall goals and evaluating alternative solutions. OPM
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can be stated as a MADM problem and AHP is effective in addressing comparative analysis
of OPM models. AHP in comparison with other MADM methods, such as Multi Attribute
Utility Theory (MAUT), Simple Multi Attribute Rating Technique (SMART), simple
additive weighting method, weighted product method and TOPSIS satisfies sub evaluation,
(Lukka and Vinnari, 2014). By providing a hierarchical model, the AHP technique is able to
which can be used for management decisions. AHP is a viable means for rapid decision-
making in a team of very different scientists and provides results consistent with those
decision- making and allows the team to evaluate biases and trends within groups
organisation. In order to measure the employee performance, they were used the same
technique in Islam (2016) which is taking the feedback from the various sources including the
supervisor, peers and the employee. From this mechanism, the purpose is to get different
inputs from different people. Lending from Aguinis (2009), the employee performance
should be evaluate based on wide range of aspects. By looking at only one or some factors to
be considered, the result could be inaccurate and as a result leaves a bad impression on
measurement in order to evaluate the employee’s performance. Michael et al. (2014) also
reviewing the study from Armstrong (2001) where the performance appraisal policy is a
fundamental process involving both supervisors and the employees. The objective is to
At present, the measurement of performance has been understood as one of the management
the process wisely. However, when it comes to addressing the performance measurement, it
is can be a frustrating process because so many problems will arise. In corresponding to this
issue, there has been a continuous discussion in the perspective of performance measurement.
employee’s performance. Thus, it is very essential to know the arising problem regarding this
issue.
they do not produce results that were originally desired or wanted. Instead, it turns out brings
a negative impact to the employees as well as to the organization. Some results maybe
worsen the true performance even though the measures indicate the improvements in
performance (Islam et al. 2017). Michael et al. (2014) states that even though performance
appraisal policy is the best tool for measuring the employee’s performance, but there is a
frequent complaint regarding the problems among managers. The underlying problem
happens when these managers give poor feedback to employees due to insufficient training
such as coaching, mentoring and support. In fact, the procedure of performance appraisal
policy is poorly designed thus making it complicated and difficult to execute. Furthermore,
performance appraisal policy. The conflict happens on the purpose or goals of a performance
appraisal when implemented. Michael et al. (2014) also states the managers often fail to
provide timely and accurate expectations and feedback to employees regarding their
performance. In addition, negative feedback given by the supervisor or manage can caused
performance. Moreover, some employees with their group often opposed the implementation
of performance appraisal policy due to various factors such as distrust their manager’s
On the other hand, the problem with performance measurement happens because of
its disfunction. This might be happened when setting targets, measuring performance and
comparing actual results with the targets (Lewis, 2017). It is evident that when a performance
measurement system is put into place, some of the resulting consequences will be things that
BSC is that they suggest the area where to focus with little instruction on how to
identify, introduce and execute the real measurements with the organizations or company.
This is supported by Mishra and Sahoo (2015). based on their research. They asserts that
BSC is not yet mature, thus exist the differences in its interpretation and practices. There is
one observation that the differential outcomes of the BSC is because of the concept still
2. FINDINGS
In this part of study, I will describe the company in more detail, analyse the strategies and
techniques used to measure performance among employees. After that, the issues with the
current performance measurement system in the company, present the measurements tools
used and discuss the methods between the theory and findings and the recommendation.
Malaysia Allied Health Sciences Academy (MAHSA) College Sabah Campus was founded
in the 2005 by Professor Tan Sri Dr. Hj. Mohamed Haniffa who is also Pro-Chancellor and
Hypermall Kota Kinabalu Sabah. With over 60 staff, MCS grew rapidly as an institution of
higher learning that it now expanding and introducing programmes to meet market demand in
Sabah and Sarawak. There are seven ten programmes in MCS such as Diploma in
MCS committed to deliver good quality of education, produce highly competent and
skilled professionals through qualified, dedicated and experienced teachers. Besides that,
education. They also aim to facilitate and enhancing local as well as international networking
students and staff. In terms of 6research and innovation, they are committed to enhance and
play important roles in developing the strategic plans and for their future development. The
integration of strategy, execution and measures is vital to the ultimate goals. In MCS, the
is CEO/principal and human resource professionals will assist the head of department in
conducting appraisal. This type of system improves reliability and standardization because a
appraisal is given to all staff including the Head of department. In this context, there are two
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groups to be measured. First for academician, administration staff and marketing staff. There
is certain standard in analysing the employee’s performance before the HOD or human
resource communicating standard sets of employees with the CEO. After that, the measuring
process will take place. In this process, they will make a comparison performance with
standard which is based on KPI scaling. Subsequently, the result will be discussed in a
meeting and certain kind of action will be taken depends on the standard evaluation.
Setting Performance
standard
Figure 1: Conceptual Framework
To analyse the employee’s performance in MCS, some of the existing material about report
and performance measures from the human resources executive has been collected. These
included the current performance reports, raw data report, all existing documentation about
the measures and development project target documentation. These documents were then
creators of the reports to understand the big picture behind the measurement system. During
the interview session, the study by Ferreira & Otley (2009) was used as the essence for the
management and helps assesses the design and use of the system. In this spectrum, the main
questions were: what are the primary objectives of the process; what are the key measures in
the PMS; how the reports are created; how the users are using the reports; what are the major
tools in the system; what are the biggest issues of the system; is there a review process for the
measures; how the information is distributed. I interviewed the human resource executive and
it took 1-1.5 hours per interviewee. Even though the main themes were defined, the
discussion was let freely to float towards the subjects that were in the interviewee’s interest
and own special area. Hence, at the greater level there did not seem to be any conflicts
between the views of the main PMS users and their objectives were uniform, which helped to
3. DISCUSSION
In this section, this study has been identified several problem areas with the current
performance measurement system. The general view was that the whole measurement
ensemble did not perfectly capture and measure the needs of the process. In this study, we
noticed that in MCS as new performance measures were added and old ones were updated,
the processes were not documented properly. There had also been problems with the base
data for the process; there were problems with errors in the data and hence issues with the
data validation. The cause of this issue is the system and management of the previous and the
current CEO is different. The system has been deliberately changed according to the way of
The arising issues in MCS are particularly in terms of recognition and appreciation.
As the education sector, where performance measures were based on tests scores changing
students’ grades and “teaching the test” in order to boost the results-based rewards in college
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occurred. According to the response from the HR executive, the most comments from the
staff when the appraisal performance taken is regarding the salary increment, bonuses and
recognition from the company. In fact, this issue is one of the biggest issues circulating
around them. Even though the issue has been escalated into the Head Quarters in Kuala
Lumpur and yearly appraisal performance has been done but the result is still the same. The
HR executive also mentioned that, the bonuses and salary increment depend on the college
total revenue yearly. The total revenue basically based on how many students register per
year. This has been the main reason for the welfare problem.
Besides that, another problem arising in MCS is the management system in the
workplace. This is related to the fundamental issue when it comes to the certain aspects such
as staff training, payment for claims welfare, health care, and other benefits in the company.
The issue has been happened since the MCS officially opened in 2012. In this context, to get
all the claims and budget for training it takes a long time to get the approval from the head of
management. This is something that could delay the process and make it even more
inefficient to do. According to the report in 2018, some employees suggested that the
management should be more flexible and efficient enough to handle the problem.
Therefore, this study had noticed a need to develop performance measurement and
process’s current key performance indicators (KPIs) from their present state to better meet
the needs of the process. The study also outlined based on this function and hence
This section will explain the tools in measuring the employee’s performance in MAHSA
College Sabah Campus. The tool consists of two measurements which is KPI Appraisal and
KSA Appraisal. The overall performance measured involving the academic staff,
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This section focuses on discussing the various strategies and techniques used to measure
performance of lecturers at the MSC. The study found that MSC has in place an appraisal
system, and this was largely acknowledge by all the categories of employees; junior and
seniors members. Therefore, there are key performance criteria that have been developed and
clearly identified in the appraisal system. In this context, the findings showed necessary
resources are available to implement an effective appraisal system in the institution. The
Human resource executive was very positive on whether the performance criteria have been
From the findings, there are sufficient preparations by the CEO/ principal, Head of
department and workers before the appraisal process is undertaken. The appraisal process is
conducted fairly and taking the individual and department performance into consideration.
This is related to the MCS missions where they are committed to deliver the highest quality
education with emphasis on-hands-on training. Besides that, MCS aim to produce competent
and highly skilled professionals through qualified, dedicated and experienced teachers. Thus,
performance analysis is very essential in order to analyze and determined whether the
tool. Key Performance Indicators (KPIs) is one of the parts under performance appraisal.
This indicator provide a way to measure on how well the business and individuals are
performing in relation to their strategic goals and objectives. KPI appraisals carry 50% of
overall evaluation. According to the HR executive, the performance appraisal will be given to
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the employees twice a year which is Midyear appraisal and End Year Appraisal. The KPIs
unscheduled classes, Uploading of lecturers materials into LMS, students satisfaction rate
(SSI), students attrition rate after the start of semester, teaching load, mentor-mentee sessions
for all assigned students and attendance at assigned committee meeting. The head of
programmes will evaluate the lecturers according to their respective department. The scoring
Based on the KPI appraisal score, the employees should achieve percentage more than
satisfactory to meet the KPI requirement. Then, the overall KPI appraisal is computes by
Appraisal model. The acronym KSA stands for Knowledge, Skills, and Abilities and this
model is very essential in of human resources and corporate education context. The
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objectives of KSA are specifically defining the requirements of a job opening and compare
candidates when making a final selection. In this part, Head of programmes and Human
resource department will evaluate the criteria in Table 2 according to the given rating scale.
CATEGORY E MS S NI U NA
5 4 3 2 1 0
Has achieved required level
of knowledge and skills in
position-related areas.
Applies knowledge and skills
to meet job requirements
JOB KNOWLEDGE Keeps up to date in all
relevant knowledge and skills
areas to meet job
requirements
Comments
Effectively designs work
plans, anticipate and
overcome obstacles
PLANNING Determines tasks and secures
appropriate resources to get
K things done
Prioritizes multiples activities
and assignments effectively
and adjust as appropriate
Comments
Use time effectively and stays
focused to ensure work is
completed
ORGANIZING Meets commitment and
deadlines consistently
Implement and monitor work
activities efficiently and
effectively
Comments
Relates well to all people
internally and externally
Builds and maintaining
effective working
INTERPERSONAL relationships
COMMUNICATIONS
Practices attentive and active
listening
Tolerate with pressure
situations comfortably such as
using diplomacy and tact
Comments
Inspires and guides
individuals toward higher
levels of performance
Treats people with dignity,
respect, and fairness
S Creates a climate in which
LEADERSHIP people want to do their best
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Based on the KSA appraisal score, the employees should achieve percentage more than
satisfactory to meet the KSA requirement. Comments are recommended for all ratings but it
is mandatory requirement for ‘Needs Improvement’ (NI) and ‘Unacceptable’ (U). Then, the
To measure the overall performance, the score will be sum up by using four criteria which is
Total score of KPI and KSA Appraisal, Merit point includes Compliments, local awards,
international awards and involvement in activity organised by MCS. The third criteria are
Demerit point includes the number of reminders, warning letter and domestic inquiry. Lastly,
tool to measure their performance. In this area, there are several components to be determine.
The components are including Formal Schedule Teaching (FST), Teaching Delivery Related
Responsibility and finally other activities involving students. The total workload is calculated
based on how many hours for academician accomplishing all the components in the workload
area. This workload may vary depends on the department and cross-teach subject. While for
the Administration department, they were evaluate based on their workload and how many
tasks they have according to the numbers of student’s intake. Meanwhile, for the marketing
department, there are specific target of numbers in terms of student’s registration in every
year. They have to achieve the target in order to get more merit and achievements.
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The goal of this study was to identify and assess how performance measurement is
administered in a selected organisation. Therefore, MAHSA College Sabah Campus has been
selected to be the choice and discussed in this study. The environment and performance
measurement system in this organization with many different groups and forces affecting the
overall measurement. By understanding how the problems emerge and affect the PMS can
help to identify new mechanisms for their management (Giovannoni & Maraghini, 2013).
Through constructive research a new model for performance measurement was created,
which considers these different perspectives. The case presented in the study illuminates the
different forces affecting the PMS and focuses on creating a context-rich understanding of
how performance measurement can be designed, developed and managed in this kind of an
environment.
In the MCS case, the existent performance measurement system was analysed and
developed from its previous state with the help of constructive research approach. This meant
aspects. Through the empirical research it was noted that there are several factors present that
constantly affect how the measurement system operates. These factors were brought together
to form a framework for measuring process performance in another similar environment. The
factors discovered in the study are: organization’s vision and objectives, organizational
context and culture, organizational infrastructure and IT, interorganizational cooperation and
the staff welfare with diverse expectations towards the performance measurement system. In
addition, resource constraints, meaning here time, costs and employee resources, were
constantly present and affected the measurement system and the processes that are measured.
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remarkably in a short period of time which calls for understanding how PMSs adapt to the
changing operating environment. This is likely to have a significant effect on the goals of
performance measurement systems as well as on the ways they are designed and used. More
5. REFERENCES
Adnan, S., & Yousif. M. K. (2014). Performance Evaluation – Methods and Techniques
Survey. International Journal of Computer and Information Technology, 3(5), 966-979.
Aguinis, H. (2009). Performance Management. 2nd Edition. Upper Saddle River, NJ: Pearson
Prentice Hall.
Gomes, J., & Romão, M. (2014). Advantages and limitations of performance measurement
tools: The balanced scorecard. In Proceedings of IS201- 7th IADIS Information Systems 2014
Conference. IADIS Press.
Islam, S., Adler, R., & Northcott, D. (2017). Managerial attitudes towards the incompleteness
of performance measurement systems. Qualitative Research in Accounting & Management,
Lewis. M. J. (2015). The politics and consequences of performance measurement. Policy and
Society, 34(1), 1–12.
Lukka, K., & Vinnari, E. (2014). Domain theory and method theory in management
accounting. Accounting, Auditing& Accountability Journal, 27(8), 1308-1338.
Mishra, S., & Sahoo, C. K. (2015). Organizational Effort towards Performance Management
System: A Key to Success. Industrial Engineering Letters, 5(2), 20-25.
Russell, R. S., Taylor, III., & Bernard, W. (2003). Operations Management 4th edition.
Upper Saddle River, New Jersey: Prentice Hall.
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